Pure Storage 2026 Q2 Earnings Beats Expectations as Net Income Surges 32%

Pure Storage reported strong Q2 2026 earnings on August 27, 2025, exceeding analyst expectations with both revenue and EPS coming in above projections. The company raised its full-year guidance, reflecting confidence in sustained momentum driven by enterprise demand and strategic product innovation.

Revenue
Pure Storage’s total revenue rose 12.7% year-over-year to $861 million in Q2 2026. Product revenue contributed $446.30 million, while subscription services added $414.70 million to the total, underscoring the company’s shift toward recurring revenue streams and software-driven offerings.

Earnings/Net Income
Earnings per share (EPS) increased by 27.3% to $0.14 in Q2 2026 from $0.11 in the prior-year quarter. Meanwhile, net income surged 32.1% to $47.12 million, reflecting improved profitability despite a 12-year history of losses in the same period.

Price Action
The stock price of Pure Storage edged up 2.72% in the latest trading day, surged 9.60% during the most recent full week, and gained 2.46% month-to-date, reflecting positive investor sentiment following the earnings report.

Post-Earnings Price Action Review
The Q2 2025 earnings report highlighted Pure Storage’s continued growth and strong performance, with revenue of $861 million surpassing analyst estimates of $846.3 million. The company’s EPS of $0.43 beat the consensus of $0.39, while its adjusted EBITDA of $158.2 million, slightly below expectations, still reflected a robust 18.4% margin. Strategic initiatives, such as the launch of PSTGaaS and strong customer engagement with major clients like Meta, have bolstered its position in the all-flash storage market. The guidance for $955 million in the next quarter, 4.6% above estimates, signals strong confidence in future performance.

CEO Commentary
CEO Charlie Giancarlo highlighted double-digit revenue growth driven by enterprise momentum and core software innovations, including Evergreen//One and Cloud Block Store. He emphasized the role of Purity OS and Fusion V2 in enabling the Enterprise Data Cloud, noting strong customer demand for policy-driven data management and significant wins in cloud-native and AI-driven markets.

Guidance
For FY2026, Pure Storage expects revenue of $3.6 billion to $3.63 billion and operating profit of $605 million to $625 million. Q3 guidance includes revenue of $950 million to $960 million and operating profit of $185 million to $195 million, reflecting improved growth expectations driven by strong RPO and hyperscaler deployments.

Additional News
The earnings call and related web content indicated that Pure Storage hosted a conference call on August 28, 2025, to discuss the Q2 2025 results in detail. The call emphasized the company’s strategic direction, product innovation, and market opportunities. While no M&A activity or dividend/buyback announcements were disclosed, the call provided insight into Pure’s operational progress and customer wins, reinforcing investor confidence in its long-term growth strategy.